Cabo Verde

Research notes

Cabo Verde — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Cabo Verde taxes residents on worldwide income. Capital gains on shares and real estate are taxed at a flat 1%, Cabo Verdean dividends at a flat 10%, and foreign income goes into the declared income taxed at 16.5-27.5% with a credit for foreign tax. There is no wealth tax, inheritance or gift tax; inherited or donated Cabo Verdean real estate bears the 1% municipal transfer tax (ITI). A property-ownership tax (IPI) of 0.1% replaced the old IUP from 2026.

US citizens: US citizens remain fully US-taxed on worldwide income and estates; the app adds the US federal layer. No US-Cabo Verde income tax treaty.

Residence and eligibility

More than 183 days in aggregate in the calendar year, or fewer days with a dwelling at 31 December suggesting habitual residence (PwC).

• Residence permit (EU, US, OTHER): Non-nationals need a residence permit; investor-residence options exist but were not verified in this session.

Capital gains

Standard regime

Capital gains of individuals on the disposal of immovable property, intellectual property or shareholdings are taxed at a flat 1% (Category E, final withholding method). Foreign income of residents is taxed under the declarative method at 16.5-27.5%; whether foreign share gains stay at the flat 1% or are taxed at those rates was not established.

• Important exceptions, statute references and announced changes: From 1 January 2026 the IUP (which also taxed certain real estate gains) was repealed and replaced by IPI/ITI; real estate transfer tax ITI 1% on acquisitions.
• Tax year / confidence / verification: 2026 / low / partially_verified (checked 2026-10-15)
• JSON numbers: headline 1% (0.01); listed domestic 1% (0.01); listed foreign n/a (null); private business sale 1% (0.01); local real estate 1% (0.01); foreign real estate n/a (null).
• How derived: Category E flat 1% for domestic listed shares, private company shares and Cabo Verde real estate. Foreign listed shares and foreign real estate: null (1% or 16.5-27.5% under the declarative method).
• Trader recharacterisation: Habitual dealing would be Category B business income at the PIT rates.
• Foreign assets: Worldwide taxation; credit for foreign tax up to the Cabo Verde tax on that income.

Open points for this tax: Rate on a resident's gains on foreign securities and foreign property (1% flat or progressive 16.5-27.5%).

Dividends

Standard regime

Dividends are investment income (Category D) taxed at a flat 10%. Income obtained abroad by residents is taxed under the declarative method at 16.5% to 27.5% with a credit for foreign tax up to the Cabo Verde tax.

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 27.5% (0.275); domestic 10% (0.1); foreign gross 27.5% (0.275); foreign tax relief: credit.
• How derived: Domestic 10% flat. Foreign: top declarative rate 27.5% (above CVE 1.8 million) before credit.
• Outbound withholding: 10% on dividends (Category D rate; non-residents taxed at the same flat rates).
• Treaty network: Only three treaties: Portugal, Guinea-Bissau and Macau. US and most EU dividends would bear full statutory source WHT.
• Holding companies: CIT 20% plus fire-brigade surtax (not verified); worldwide basis.

Open points for this tax: Whether foreign dividends can instead be taxed at the 10% Category D flat rate.

Inheritance and gifts to children

Standard regime

No inheritance or gift tax was found. From 2026, ITI (municipal real estate transfer tax) of 1% applies to free transfers by death or donation of Cabo Verde real estate, paid by the acquirer. Movable property such as securities is not covered by ITI.

• Important exceptions, statute references and announced changes: Stamp duty on gratuitous transfers (as in Portugal's model) was not found in PwC's stamp duty table but was not ruled out.
• Tax year / confidence / verification: 2026 / low / partially_verified (checked 2026-10-15)
• JSON numbers: basis none, children fully_exempt, exemption 0 CVE, brackets (marginal): none; other transfer costs 0% (0.0).
• Gifts: No gift tax found; 1% ITI on donated Cabo Verde real estate. (same as inheritance: True; tax-free after years: None)
• Foreign assets: No tax found.
• Residence/domicile rules: Not applicable.
• Business relief covers listed shares: False

Open points for this tax: Whether the Stamp Duty Code taxes gratuitous acquisitions (inheritance/gifts) of movables.

Wealth tax

Standard regime

No net wealth tax.

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON type: none
• Property tax (not a wealth tax): From 1 January 2026: IPI (property-ownership tax) 0.1% of taxable value (0.15% land), replacing the 1.5% IUP; ITI transfer tax 1% (3% if a party uses a privileged tax regime).

Special regimes

None modelled; see Residence and eligibility.

Company taxation (kept separate from personal tax)

Headline CIT rate: 20% (0.2). CIT 20% on worldwide profits of resident companies; micro and small companies pay a 4% single special tax on turnover.

Cost of living notes

Not researched.

Open questions

• The 1% capital gains rate is low enough that its scope for foreign assets matters greatly; it should be confirmed in the PIT Code.

Sources

• Cabo Verde - Individual - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/income-determination
• Cabo Verde - Individual - Taxes on personal income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/taxes-on-personal-income
• Cabo Verde - Individual - Foreign tax relief and tax treaties (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/foreign-tax-relief-and-tax-treaties
• Cabo Verde - Individual - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/other-taxes
• Cabo Verde - Corporate - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/corporate/other-taxes
• Cabo Verde - Individual - Residence (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/residence
• Cabo Verde - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/corporate/taxes-on-corporate-income

Change log

• 2026-10-15: initial research.